Question

Filing taxes with a Canadian wife in a community property state

Forum|Forum|4 years ago
March 18, 2022
1 reply
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My Canadian wife is a nonresident alien who doesn't have a ssn or itin, and I live in Texas. If I file mfs, I have to complete Form 8958. If I file mfs, does she ALSO have to file a tax return? Also, if I file mfj, what documentation do I need to include to prove her earnings/taxes that would be added to the tax return. I know I will probably have to convert CAD to USD. So confusing.

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ErnieS0

It depends on whether your wife lived in the US and/or had any US income.

You wife would not have to file a US income tax return if:

She lived in Canada and did not have any US-sourced income, such as US employment
She lived in Texas but did not make any money

If you file together, you do not have to include any documents. Enter her income (converted to US dollars under Foreign Earned Income and Exclusion in TurboTax.

Type foreign income in Search in the top right
Select Jump to foreign income

You can claim a credit or deduction for tax paid to Canada

Type foreign tax credit in Search in the top right
Select Jump to foreign tax credit

For more info see Nonresident spouse

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J

johnsoantxAuthor

Thank you for response. To clarify, my wife didn't live in US nor have any US income. That's why I am so confused with community property state requirements (Form 8958). So if I understand your reply, if I file jointly, and use the foreign income option, that should work without filing Form 8958, correct?

Also, should I go ahead and apply for her ITIN at the same time? Since she doesn't have a ssn or ITIN # yet, that has definitely complicated matters. I believe I would wind up submitting both that request form and my income tax return to the Austin, Tx IRS office.

KrisD15

Yes, you may attach W-7 to your tax return and mail the return, W-7, and proper documentation to the Austin IRS office. However, that should cause a delay with the processing of your return.

You also have the option to use a Certifying Acceptance Agent (CAA) or Acceptance Agent (AA) which should help move things along.

More Info

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